homebusiness Newscompanies NewsSREI promoters seek to withdraw from insolvency case, offer to pay creditors full claim
SREI promoters seek to withdraw from insolvency case, offer to pay creditors full claim
The promoters claim the current plans do not offer a fair consideration to Srei creditors and stakeholders.
The promoters of the Srei Group on Thursday submitted a proposal to withdraw the company from insolvency under Section 12A of the Insolvency and Bankruptcy Code (IBC). The proposal was sent via the promoter company Adisri Commercial Pvt Ltd to the Srei lenders ahead of the voting decision on resolution plans, sources close to the matter told CNBC-TV18.
The promoters claim the current plans do not offer a fair consideration to Srei creditors and stakeholders.
The promoters have reportedly offered to pay the secured financial creditors their entire claim of Rs 29,092 crore in debt instruments including non-convertible debentures, optionally convertible debentures, etc.
Additionally, the promoters have also offered full repayment of the unsecured financial creditors' claims of Rs 3,210 crore in debt instruments. However, it is unlikely that the lenders will consider the proposal from the promoters.
It is important to note that voting on resolution plans is currently underway, and the deadline for voting has been pushed to February 14.
SREI Equipment Finance and SREI Infrastructure Finance were admitted into the bankruptcy court on February 15 this year, after the Reserve Bank of India superseded the boards of both the companies due to governance concerns and defaults.
Earlier, CNBC-TV18 had reported that NARCL offered Rs 5,555 crore, Authum Rs 5,526 crore, and Varde-Arena Rs 4,682 crore in net present value terms for Srei.
The Reserve Bank of India had in October 2021 superseded the boards of SIFL (Srei Infrastructure Finance Limited) and its wholly-owned subsidiary SEFL (Srei Equipment Finance Limited), and a joint resolution is taking place for these companies for its outstanding liabilities of about Rs 32,000 crore.
The Srei Group is facing claims from various creditors, including Canara Bank, Union Bank of India, Punjab National Bank, State Bank of India, Bank of Baroda, and Indian Bank among others.
The development has sparked mixed reactions in the market, with some experts claiming that the proposal could lead to a resolution for the troubled Srei Group, while others remain cautious and await the outcome of the voting. The final decision will have far-reaching implications for the Srei Group and its creditors.
(Edited by : Anand Singha, Pradeep John)
First Published: Feb 9, 2023 8:40 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
2024 Lok Sabha Elections | Why phase-3 is a tightrope walk for all parties
May 7, 2024 1:08 PM
Himachal Pradesh Lok Sabha elections 2024: Seats, schedule, Congress candidates and more
May 7, 2024 12:27 PM